The fees associated with selling a home vary according to several factors. When a home is in escrow the fees that
the buyer and seller pay are called "closing costs". The Buyer has certain fees that they pay and the Seller has certain
fees that they pay.
Buyers and Sellers frequently negotiate closing costs. This again depends on the terms of the purchase agreement and the
type of financing. There is no fixed terms in negotiating costs.
The Seller pays
- Broker's commission
- Transfer tax
- Prepayment penalty (if any)
- Document Fee
- Title insurance
- Property Taxes (prorated)
- Pest control work (if any)
- FHA or VA points (if any)
At the closing, certain costs are often prorated between the buyer and seller. The most common cost is for property
taxes. Property taxes are paid at the end of the year, so if the home is sold in the middle of the year the seller
would credit the buyer a portion of the taxes.
